Capital gain on sale of land

This query is : Resolved

Samir Ghanchi (Querist)
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09 August 2014 If a person sold agricultural Land after getting certificate of NA(Non Agricultural)which is situated in Village at Vadodara.

He shall receive amount in some installments which shall be completed in two years.

my Query is

1.If such land is situated in specified area no capital gain will be applicable..but what is that specified area..??
2.If such land is not situated in such specified area and is taxable one how should it shall be shown such income in IT return.
3.If he is getting part of money in 14-15 and rest in 15-16 then how shall he show such income in his return and when such capital gain tax will be attracted.

4. if he want to invest amount of capital gain in residential property then from which year he should consider period is starting for investing..??

Please Advise.

Rupesh Jain

Rupesh Jain (Expert)
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09 August 2014 for specified are you have to take information form you land revenue office/ municipal corporation area.

if it is old more that 36 month when you tfr. then capital gain will LTCG and take indexation benefit and calculate the LTCG(long term capilta gain) and you can invest u/s 54F all proceeds
in house property with 2 year form tfr date and 3 year construction the property from tfr date . for that you have to deposit the amount in capital gain account scheme 1988.

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Samir Ghanchi

Samir Ghanchi (Querist)
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25 August 2014 Thank you for your valuable reply.

But how shall such income been shown in Return in which such part payment has been received..???

If I am going for Section 54 B (Capital Gain on transfer of Land used for Agricultural purposed) and buy another agricultural land what formalities i shall have to complete.

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